Verizon Expands FTTP Plan

Verizon Communications Inc. (NYSE: VZ) is to hire an extra 3,000 to 5,000 staff by the end of 2005 for its FTTP (fiber to the premises) buildout, which has now been expanded to six further states (see Verizon Expands FTTP Plans).

The RBOC had previously announced plans to lay fiber connections to 1 million homes and businesses in California, Florida, and Texas. Now it is planning to hook up an additional 2 million customers during 2005 in Delaware, Maryland, Massachusetts, New York, Pennsylvania, and Virginia, and work is already underway in those new states.

The carrier says it is spending $800 million on its fiber rollout this year alone.

Verizon's news follows on the heels of the Federal Communications Commission (FCC)'s "deep fiber" ruling and SBC Communications Inc.'s (NYSE: SBC) fiber expansion plans. (See Critical Telecom Cheers FCC Ruling, SBC Speeds Up FTTH Plan, and Mais Alors! Alcatel Bags $1.7B SBC Deal .)

Verizon hasn't specified which vendors will benefit from this expansion, but current suppliers ADC Telecommunications Inc. (Nasdaq: ADCT), Advanced Fibre Communications Inc. (AFC) (Nasdaq: AFCI), and Corning Inc. (NYSE: GLW) look well placed.

ADC's share price jumped 7 percent yesterday to $2.23, while Corning rose 3 percent to $10.73.

AFC's stock, however, dipped slightly, by 7 cents to $15.59, perhaps reflecting Verizon's confirmation that it will bring in a second source for its FTTP networking equipment, and the uncertainty surrounding AFC's proposed acquisition by Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA). (See Rough Week for AFC.)

— Ray Le Maistre, International News Editor, Light Reading

lastmile 12/5/2012 | 1:09:10 AM
re: Verizon Expands FTTP Plan Not one message from the light readers on this topic.
PackMan 12/5/2012 | 1:09:08 AM
re: Verizon Expands FTTP Plan that's because they're all choked up eating crow.
Sign In